To the right is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same.
1. compensation of employees- $194.2
2. U.S exports of goods and services- $17.8
3. consumption of fixed capital- $11.8
4. government purchases- $59.4
5. taxes on production and imports- $14.4
6. net private domestic investment- $52.1
7. transfer payments- $13.9
8. U.S imports of goods and services- $16.5
9. personal taxes- $40.5
10. net foreign factor income- $2.2
11. personal consumption expenditures- $219.1
12. statistical discrepancy- $0
a. Using the above data, determine GDP by both the expenditures and the income approaches. Then determine NDP.
b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make up NI.
c. Adjust NI (from part b) as required to obtain PI.
d. Adjust PI (from part c) as required to obtain DI.
To the right is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same.
1. compensation of employees- $194.2
2. U.S exports of goods and services- $17.8
3. consumption of fixed capital- $11.8
4. government purchases- $59.4
5. taxes on production and imports- $14.4
6. net private domestic investment- $52.1
7. transfer payments- $13.9
8. U.S imports of goods and services- $16.5
9. personal taxes- $40.5
10. net foreign factor income- $2.2
11. personal consumption expenditures- $219.1
12. statistical discrepancy- $0
a. Using the above data, determine GDP by both the expenditures and the income approaches. Then determine NDP.
b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make up NI.
c. Adjust NI (from part b) as required to obtain PI.
d. Adjust PI (from part c) as required to obtain DI.
Related textbook solutions
Related questions
| Personal consumption expenditures | $245 |
| Net business transfer payments | 9 |
| Net factor income from the ROW | 4 |
| Transfer payments | 12 |
| Rents | 14 |
| Statistical discrepancy | 8 |
| Consumption of fixed capital (depreciation) | 27 |
| Social Security contributions | 20 |
| Net Interest | 13 |
| Proprietors’ income | 33 |
| Net exports | 11 |
| Dividends plus personal interest income | 16 |
| Compensation of employees | 223 |
| Indirect Taxes minus subsidies | 18 |
| Personal taxes | 26 |
| Corporate profits | 56 |
| Government purchases | 72 |
| Net private domestic investment | 33 |
| Surplus of government enterprises | -9 |
a. Using the above data, determine GDP by both the expenditures and the income approaches. Then determine NDP.
b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that makeup NI.
c. Adjust NI (from part b ) as required to obtain PI.
d. Adjust PI (from part c ) as required to obtain PDI.
